Shares in Healthcare Locums have jumped by nearly a quarter after the staffing agency said it had received a takeover approach.

The company - which had been in the doldrums recently - has climbed 45p to 244p on the news. Two weeks ago it upset the market after its profits came in below expectations due to a change in accounting policy. The company said it would recognise revenue when a candidate starts - rather than accepts - a position. It said the change reflected the uncertainty over the length of time it takes to receive the final cash income, especially in the US where it can take four years to provide a visa for successful candidates. The company said using its old policy operating profits would have been more than £31m, compared to the reported £25.5m.

Yesterday it emerged that US group Equinox Partners, which specializes in executive search services for the real estate industry, had raised its stake in Healthcare Locums to 16.7%.

Still with recruitment, Michael Page International is 8p better at 431.5p after first quarter profits rose 2.9%, helped by an improved performance in the UK. Panmure Gordon commented:

While this update certainly suggests the recovery in recruitment markets is firmly underway, with Michael Page leading the charge, we think this has largely been priced in with the company trading on 14 times peak earnings. Our target price increases from 400p to 430p, but this is not enough to move it out of hold territory for now.